Customer-Driven Benchmarking : a Cost-to-Serve Analysis at Johnson & Johnson

Details

Supervisors

Chevalier, Philippe

Faculty

Louvain School of Management

Degree label

Master [120] en Ingénieur de gestion

Abstract

The Medical Device sector is nowadays facing different challenges that require companies to readapt their supply chain. Legal requirements are becoming stricter, imposing companies to respect an increasing panel of criteria to gain access to the market; operational margins are decreasing because of price pressure; there has been a major switch from evidence-based care to value-based care. Being one of the most important company in the healthcare sector, Johnson & Johnson continually has then to develop its business analytics to remain competitive. In this context of development, a cost-to-serve analysis has been conducted in the Medical Devices sector by the Customer Logistics & Services department. At the demand of the company, customers’ performances need to be analysed to identify costly versus less costly customers. The goal of the project is to facilitate the analysis of customers by proposing an innovative tool that compares customers to the identified benchmark and then identifies opportunities for cost improvements. The methodology used for the analysis follows the benchmarking process that can be seen as a Plan – Do – Check – Act cycle. Even if the analysis is limited to a reduced scope, its aim is to be applied to the integral MD business and to be replicated over time.